Financial Performance - The company reported a significant increase in profit attributable to shareholders, reaching HKD 361,672 million in 2024, up from HKD 134,844 million in 2023, resulting in basic earnings per share of HKD 15.87, compared to HKD 5.92 in the previous year[39]. - The net profit surged by 140.5% to HKD 380.7 million in 2024, marking a historical high for the company[57]. - The adjusted net profit attributable to the company's owners for the fiscal year ending March 31, 2024, was HKD 361.7 million, compared to HKD 134.8 million for the previous year[119]. - The adjusted net profit increased from HKD 379.3 million for the year ending March 31, 2023, to HKD 396.5 million for the year ending March 31, 2024, representing a growth of 4.5%[171]. - The gross profit increased by 3.8% to HKD 774.2 million, with the gross profit margin improving by 1.5 percentage points to 17.7% in 2024[56]. - Total revenue slightly decreased by 4.9% to HKD 4,378.9 million in 2024, primarily due to a decline in overall selling prices of knitwear products[56]. - The sales revenue of men's and women's knitted products decreased by HKD 152.7 million to HKD 3,513.7 million for the year ended March 31, 2024[90]. - The average selling price of men's and women's knitted products decreased by 13.1%, from HKD 125.6 to HKD 109.1 per piece, despite the increase in sales volume due to stronger-than-expected demand in the second half of the fiscal year[63]. Revenue and Sales - Revenue for the year ended March 31, 2024, was HKD 4,378.9 million, a decrease of 4.9% compared to HKD 4,602.3 million in 2023[186]. - For the fiscal year ending March 31, 2024, the group recorded revenue primarily from sales of knitted products, including women's, men's, and children's apparel, totaling 32.2 million pieces, an increase of 10.3% from 29.2 million pieces in the previous year[62][63]. - The sales volume of men's and women's knitwear increased by 25.7% to 13.2 million pieces in the second half of 2024, contributing to a total of 32.2 million pieces for the fiscal year[55]. - Revenue contributions from major markets as of March 31, 2024, were 31.1% from Japan, 20.6% from mainland China, and 15.7% from Europe[64]. Expenses and Liabilities - The total income tax expense for 2024 was HKD 53,201,000, a slight increase from HKD 51,095,000 in 2023, reflecting a growth of about 4%[6]. - The group reported a sales cost of HKD 3,604.6 million for the year ended March 31, 2024, which includes inventory costs, direct labor costs, subcontracting fees, depreciation, utilities, and production overheads[158]. - Trade payables and notes payable decreased from HKD 363,392,000 in 2023 to HKD 335,457,000 in 2024, representing a decline of approximately 7.7%[46]. - The company's bank borrowings totaled HKD 807,940,000 in 2024, down from HKD 936,755,000 in 2023, indicating a reduction of about 13.0%[48]. - Total lease liabilities as of March 31, 2024, amounted to HKD 163,060 million, an increase from HKD 157,749 million in 2023, with a weighted average effective interest rate of 4.31% compared to 2.77% in 2023[25]. Dividends - The company declared an interim dividend of HKD 0.095 per share, totaling HKD 216,542,000, which was paid on December 20, 2023[9]. - The company declared a second interim dividend of HKD 0.035 per share, totaling HKD 79,779,000, contributing to an annual dividend payout ratio of 82%[34]. - The board has declared a second interim dividend of HKD 0.035 per share for the year ended March 31, 2024, expected to be paid on July 23, 2024[134]. Operational Challenges - The company is facing challenges in Myanmar due to social unrest and military conflict, impacting the development of production bases[3]. - The group confirmed an impairment loss of HKD 34.0 million for its Myanmar production base in the fiscal year 2024[85]. - The group recorded an impairment loss of HKD 34.0 million related to its Myanmar production base, a significant decrease from HKD 243.4 million in the previous year, reflecting ongoing concerns over labor rights and political instability[72][74]. Cash Flow and Financial Management - The company generated net cash from operating activities of HKD 582.9 million for the fiscal year ending March 31, 2024, primarily due to a profit before tax of HKD 433.9 million, adjusted for depreciation of HKD 226.0 million and a decrease in inventory of HKD 120.5 million[121]. - The net cash used in financing activities for the fiscal year was HKD 435.9 million, primarily due to dividend payments of HKD 230.2 million and a net reduction in bank borrowings and lease liabilities of HKD 203.4 million[82]. - The net cash used in investing activities for the fiscal year ending March 31, 2024, was HKD 145.1 million, resulting from the purchase of properties, plants, and equipment totaling HKD 216.3 million, offset by proceeds from the sale of properties, plants, and equipment amounting to HKD 41.6 million and interest received of HKD 29.6 million[107]. Future Outlook and Strategy - The company aims to balance order pricing and expansion while improving profitability and profit margins despite a slight decline in revenue at the end of fiscal year 2024[31]. - The company is committed to enhancing product quality and expanding its customer base, indicating a positive outlook for future growth[35]. - The group aims to continue exploring opportunities for business expansion and diversification while creating greater returns for shareholders[89]. - The company anticipates a slowdown in the shift of production from mainland China to Southeast Asia as global customers continue to expand sales in the Chinese market[58]. Compliance and Governance - The audit committee consists of three independent non-executive directors and is responsible for reviewing and supervising the group's financial reporting process and internal control systems[141]. - The group has adhered to all mandatory provisions of the corporate governance code as of March 31, 2024[153]. - The group has not entered into any long-term foreign currency contracts to mitigate the risk of RMB against USD as of March 31, 2024[129].
南旋控股(01982) - 2024 - 年度业绩